Monday, October 24, 2016
The As-Efficient-Competitor Test: Necessary or Sufficient to Establish an Abuse of Dominant Position?
Elisabeth de Ghellinck, Economics School of Louvain asks The As-Efficient-Competitor Test: Necessary or Sufficient to Establish an Abuse of Dominant Position?
ABSTRACT: The As-Efficient-Competitor test alone is neither necessary nor sufficient to establish the abusive character of standardised retroactive rebate schemes. It is a powerful tool allowing to minimise the risk of making errors when reliable data are available. The estimation of the relative size of the foreclosed sales remains key to establish the anticompetitive foreclosure impact as, by nature, standardised retroactive rebates do not necessarily foreclose the market. Computing the effective prices provides a clear indication of the magnitude of the penalty imposed on the rival by the dominant firm.